Showing papers on "Financial risk published in 1976"
TL;DR: In this article, the authors consider the increased market risks together with growing use of debt capital have substantially increased financial risks for many agricultural producers and there is serious need to consider added de-
Abstract: Price variability of agricultural products has increased greatly in the early 1970s owing to modified government programs for many U.S. commodities, reduced crop inventories, variation in world production, devaluation of the U.S. dollar, and expanded, unpredictable fluctuations in foreign demand. These increased market risks together with growing use of debt capital have substantially increased financial risks for many agricultural producers. Hence, there is serious need to consider added de-
45 citations
Book•
01 Jan 1976
TL;DR: In this article, the authors present a review of financial management in the field of finance, focusing on short-term and intermediate-term sources of short-and long-term finance.
Abstract: I. THE FOUNDATION. 1. Overview of Financial Management. 2. Financial Securities and Markets. 3. A Review of Financial Accounting. II. THE FIRM AND ITS OPERATIONS. 4. Financial Statements. 5. Financial Analysis. 6. Profit Planning. 7. Leverage. III. WORKING-CAPITAL MANAGEMENT. 8. Working Capital and Cash Management. 9. Management of Receivables and Inventory. 10. Economics of Working Capital. 11. Investing Excess Cash. IV. INVESTMENT POLICY. 12. Capital Budgeting. 13. Risk and Required Return. 14. Valuation of the Firm. 15. Mergers and Acquisitions. V. FINANCING DECISIONS. 16. Sources of Short- and Intermediate-Term Financing. 17. Long-Term Financing. 18. Lease-Buy Decisions. 19. Dividend Policies and Decisions.
29 citations
TL;DR: In this paper, the authors provide an analytical framework for the lease versus purchase evaluation that resolves this issue by neutralizing explicitly the impact of the lease contract on the firm's financial structure and debt capacity.
Abstract: A survey of the literature in financial management reveals persistent disagreement regarding the appropriate method for the evaluation of the lease versus purchase alternatives. Most of the recent controversy centers around the appropriate method of incorporating into the evaluation the effects of the implicit debt financing embodied in a lease contract [1, 2, 3]. A lease represents simultaneously an investment and a financing decision, and a leased asset generates both operating cash flows and financial cash flows. As such, it has an impact on the firm's financial structure and financial risk different from that generated by a regular asset acquisition that should be quantified and incorporated into the evaluation. This paper provides an analytical framework for the lease versus purchase evaluation that resolves this issue by neutralizing explicitly the impact of the lease contract on the firm's financial structure and debt capacity. Other approaches to lease evaluation are discussed and compared to the evaluation model proposed here.
10 citations
9 citations
8 citations